Landstar-OOIDA case concludes

Thursday, January 03, 2013

Landstar System, the Jacksonville, Fla.-based non-asset-based highway carrier, said Thursday it has concluded its decade-long litigation with the Owner-Operator Independent Drivers Association (OOIDA).
At issue was Landstar's compliance with federal regulations that govern the leasing relationship between motor carriers and truck owner-operators. Landstar, one of the top 10 U.S. trucking providers by revenue, relies on independent drivers and agents to provide and sell its services, which include some forwarding and other third party logistics services.
"Landstar is very pleased with the conclusion of this lawsuit," said Michael Kneller, the company's vice president and general counsel. "After a decade of proceedings, including two trials and extensive appeals, this litigation comes to an end after affirming the validity of Landstar's current leases in place with all of its BCOs (benefit capacity owners, Landstar’s parlance for independent drivers) and with no award of injunctive or monetary relief of any kind to the plaintiffs." OOIDA had argued Landstar's leases with its BCOs violated federal leasing regulations, the company unlawfully reduced the compensation of its BCOs on certain loads, and it offered voluntary programs to its BCOs to enable them to buy discounted products and services that are then "charged back" against the BCO's settlement compensation.
In October, a U.S. District Court rejected OOIDA's argument that it's unlawful for Landstar to sell these items for more than Landstar's third-party costs.
"We are pleased to put this litigation behind us,” said Jim Johnston, president of OOIDA. “Landstar is a reputable motor carrier with a history of retaining owner-operators who are among the most highly skilled and professional individuals in the trucking industry. We are optimistic that we can work together in the future in advancing the goals of owner-operators." - Eric Johnson